Linear Tech (LLTC) Little Changed on As-Expected Earnings

NEW YORK (TheStreet) -- Linear Technology (LLTC) was little changed over Wednesday, despite fulfilling earnings estimates. By early afternoon, shares had traced 0.56% higher to $45.44.

After the bell Tuesday, the semiconductor manufacturer reported net income of 44 cents a share for the second quarter ended Dec. 29, 2.2% lower than the preceding three-month period but 15.8% higher than the year-ago quarter. Earnings came in a penny short of consensus, according to analysts surveyed by Thomson Reuters.

Second-quarter revenue of $334.6 million was 1.7% lower than the preceding period but 9.6% higher than the year-ago quarter. Total sales were largely in line with analysts' expectations of $334.79 million in revenue.

"Our December quarter is generally a slower quarter for us as the automotive and industrial markets tend to be weaker. Though automotive continued to grow modestly, the industrial market was down for us and we ended the quarter with total revenues down sequentially 1.7%, in line with the midpoint of our guidance as the quarter generally went as expected," said CEO Lothar Maier in a statement.

The Milpitas, Calif.-based business forecasts revenue to grow 3% to 6% sequentially in the third quarter ending March. Analysts expect the company to post third-quarter net income of 48 cents a share on $346.33 million in revenue.

TheStreet Ratings team rates LINEAR TECHNOLOGY CORP as a Buy with a ratings score of A-. The team has this to say about their recommendation:

"We rate LINEAR TECHNOLOGY CORP (LLTC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, solid stock price performance, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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